They say it’s the little things that count. And that's certainly true when it comes to saving for retirement. Just by putting an extra 1% of your monthly salary into your workplace pension each month you can make a dramatic difference in the income you’ll have in retirement.

As Carolyn Jones, our Head of Pension Policy and Workplace Investing explains: “Saving sufficiently for retirement might seem like a lofty goal, especially when household budgets are squeezed. However, saving just small amounts along the way can have a big impact when you’re ready to retire.”

Commit to putting an additional 1% into your workplace pension now and thanks to the power of small amounts you stand to boost the pension pot you will have when you eventually come to retire.

While 1% is a small percentage of your annual earnings, after 20 or 30 years it can make a significant difference to how much you have in your pension when you retire. That’s because the longer you give your money the chance to grow, the better.

So what are you waiting for? Get started today.

Source: Fidelity as at November 2018

*Approximation based on a 1% increase in contribution. Continued employment from current age to retirement age, 68. We assume you are exactly your current age (in whole number of years) and will retire on your birthday at your retirement age. Number of years of savings equals retirement age minus current age. Nominal investment growth rate is assumed to be 5%. Hypothetical rate of salary increase is assumed to be 3.75% (2% inflation + 1.75% real salary growth rate). All accumulated retirement savings amounts are shown in future (nominal) pounds.
Your own plan account may earn more or less than this example and income taxes will be due when you withdraw from your account. Investing in this manner does not ensure a profit or guarantee against a loss in declining markets.

The value of investments and the income from them can go down as well as up, so you may not get back what you invest. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a personal recommendation for any investment.

1. Take a look at the numbers.

Want to see how much of an impact a 1% increase in savings can make for you? Use our interactive calculator. See how a small change can make a BIG DIFFERENCE

2. Start small and watch it grow

The fact is that to think big you have to start small. Adding an additional £7, £9, or £11 a week to your pension savings can make a big difference.

And because we’re talking small sums, finding the extra money doesn’t have to mean huge sacrifices either. For even the most hard-pressed of savers with a little bit of discipline and a clear focus on your end goal it’s possible to free-up cash that you would otherwise fritter away and put it to far better use inside your pension instead. Whether you choose to skip your morning latte on the way to work or ditch those unused TV and magazine subscriptions, there are likely to be sacrifice-free savings you can find.

And the added beauty of saving into your workplace pension is that you probably won’t even notice the extra 1% going out because it comes straight out of your monthly salary.

3. Consider saving 13%

Our research shows that aiming to save 13% of your household income towards retirement annually — which includes any matching contributions an employer may make to a workplace pension — can help ensure that you can maintain your lifestyle in retirement.

See whether you’re on track or explore our Retirement Savings Guidelines.

Not saving that much? Don't worry. Few people get there overnight. Think of planning for retirement as a journey. The key is to save as much as you can now and try to increase savings over time. If possible, save at least enough to get any match from your employer.

Ready to take it up a level?

Of course, 1% is just a start. The more you can save into your pension, the better. And don’t forget to include your employer’s contributions too. It all adds up.

The trick is to save as much as you can afford now and try to increase your savings every year to ensure you’re best placed to enjoy your retirement.

Whether it's 1%, 3% or 5% extra, the additional money saved today could make a big difference when it comes to helping you achieve the retirement you want.

Ready to make a change?

To change your regular contributions, speak to your employer or usual pension contact. To make a one off contribution contact us on 0800 3 68 68 68.

Lines are open Monday to Friday, 8am to 6pm

Important Information

Eligibility to invest into a pension and the value of tax savings depends on personal circumstances and all tax rules may change. You will not normally be able to access money held in a pension until the age of 55.

The value of investments and the income from them can go down as well as up, so you may not get back what you invest. This information does not constitute investment advice and should not be used as the basis for any investment decision nor should it be treated as a recommendation for any investment or action. You should regularly review your investment objectives and choices and if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser.